Moody’s rates Caliber notes B3

Moody’s said it assigned a B3 rating to the new $1.25 billion of eight-year senior secured first-lien notes that Caliber Collision (Wand NewCo 3, Inc.) is selling.

Caliber's other ratings, including its B3 corporate family rating and B3-PD probability of default rating.

The company will use the proceeds and a new senior secured first-lien term loan due 2031 to fund a $1.2 billion dividend.

“While debt levels are increasing to fund a larger dividend, Moody's leverage and coverage metrics remain within tolerances for the B3 rating. Moody's continues to expect positive free cash flow generation and good liquidity. The rating action reflects governance considerations, particularly Caliber's increase in leverage to support shareholder returns,” the agency said in a press release.

The outlook remains stable.

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